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Darryl Schoon's Blog
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Description:
Moving Through The Maelstrom
With Darryl Robert Schoon
Only the lost will find the way
It is my belief that a time of unprecedented crisis has begun. While the economic crisis has been the focus of my writings, it is only one of many crises that are about to occur—economic, political, ecological, and spiritual. This blog may be helpful to you during these times. If it is, you will know it. If it isn’t, you will know it too. |
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Posted by Darryl Schoon in Untagged
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 As the crisis moves closer to resolution, physical possession of gold and silver becomes important. If precious metals are held by a third party, they should be held in allocated, not non-allocated, accounts.
This distinction is critical. Non-allocated accounts do not give buyers title to physical gold or silver. Buyers only have a claim for the value of the holdings. Allocated accounts give buyers actual title to specific metals. When the run on gold and silver begins, those holding paper claims against precious metals will be left with paper claims instead of the precious metals they thought they owned. Last year this was not important.This year it is. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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The recent 382 ton gold swap by the Bank of International Settlements is an indication that gold has re-entered the international monetary system after an absence of almost 40 years. The swap was undoubtedly between Portugal and the BIS which allowed Portugal to refinance its debt using its gold reserves (382 tons) as collateral. CDS spreads on sovereign debt has forced borrowing costs higher and to lower those costs, Portugal used its gold to get lower rates. The problem is that many nations with the same need to refinance do not have sufficient gold reserves to qualify for lower rates, e.g. the UK, the US, Japan etc. The sovereign debt crisis is not over. The reappearance of gold is an indication that IOUs alone are no longer sufficient. What the consequences will be remains to be seen. Keep your eye on the bond markets. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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The split between the US and the G20 is far more significant than believed. Wanting to smooth over its differences, the G20 presented a united front in Toronto, but the G20 is anything but united. For the first time since the crisis happened, the rest of the G20 nations are refusing to follow the US. The borrow and spend policies of the US are, in fact, responsible for the problems that plague the world today; nonetheless, it was a surprise that the rest of the G20 would not follow the US on its path of continued spending. The cost of cutting budgets will be high and the benefits gained may be too little too late. But the world is no longer willing to follow the US. America will pay for its continued profligacy but that's a story for another day, a day that will arrive sooner than America thinks. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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The gulf oil spill joins the increasing number of earthquakes, the record temperatures of 2010 (the highest in recorded history), floods in the US, Poland, and China and the eruption of the Icelandic volcano as evidence that environmental catastrophes have joined economic collapse as another cause for concern for humanity. Expect this trend to continue. We have entered a period of systemic change that will increase in intensity and scope. We have been used to a more benign environment and a more hospitable planet. We have pushed the envelope and it has ripped. What is happening to the environment is no different that what has happened to financial markets. Extreme self-centeredness had blinded us to the consequences of our actions. The wake-up call may be far more than we expected. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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The EU aid package of almost one trillion dollars had to be increased 7-fold in one week to hold off speculators. This is not a sign of strength. It's a sign of weakness. The markets are now increasingly wary of sovereign debt and are ready to strike at any vulnerability. This is always so when predators smell blood. It is no different in bond markets. In fact, it is even more so. The cost to the governments will end up as more government liabilities, liabilities that will force government balance sheets to reflect increasing deficits, deficits that are already causing investor concern. The addition of one trillion dollars in debt only adds to the problem. It does not solve it. The debt crisis is accelerating. It has only been delayed. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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This question was asked during Professor Fekete's Gold Seminar in Hungary in March. It was also asked of me last week in an interview with Mining Stock Talk, see http://miningstocktalk.com/mining-stock-talk-interviews-darryl-schoon/ . Cearly, people are nervous. My answer is that while it is impossible to fix a date, we are closer than many believe to the final collapse. The current concern about sovereign debt is a critical marker in that sovereign debt is the debtor's last resort. Government printing presses are now the only barrier between ambulatory insolvency and sovereign bankruptcy. Last month the IMF created a $500 billion fund to deal with new crises. The problem is two-fold. Spain, the next nation expected to face a debt crisis, would require the entire $500 billion; and, the US, the primary contributor to the fund, is already the world's largest debtor and unable to pay its own bills except by borrowing from others. The handwritting is already on the wall. Soon, the rest of the world will be too. Good luck, Darryl Robert Schoon www.drschoon.com www.survivethecrisis.com
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Posted by Darryl Schoon in Untagged
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Despite recent optimism that central bankers have saved us from another Great Depression, they have not. They have only delayed its onset. A two year recession cannot undo the credit excesses of the past 25 years. Unfounded optimism is just that. I, however, am very optimistic. This is because I believe the current collapse is a necessary step to a better world. The old must die before the new can be born. The inequities of the present world are not apparent to most, especially to those who have benefited from them. Their time is over as the epoch that favored them is about to end. At the recent conference in Hungary sponsored by the Gold Standard Institute, a fund manager asked me a question. I responded by noting that his question was a metaphysical question. He said yes, it was a metaphysical question and that is why he asked it. We are in such times where metaphysical questions and answers are both appropriate and needed. The old world with its old answers no longer suffices and unless we are open to what is to be, we will swept away along with the past. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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The danger of countries such as Greece going into default is a sign of much deeper problems. Sovereign default is an indicator that we near the end of the road. When governments go broke, basic social institutions break down. This is already beginning to happen. In the US, some towns have suspended basic services. Tracy, a small city in California, has announced it will charge $300 for each emergency call unless callers subscribe to a prepaid $49 plan that allows for unlimited emergency calls. This is just the beginning. Today, they are isolated instances. In the next few years, they will become commonplace. People have no idea how deep this economic collapse will be. Someday, they will. We are suspended between the illusion of prosperity that was promoted by credit and the devastation that is not yet here. Soon, we will wake up to the reality of what credit created. Greece is only the beginning. Nations, cities, and states will fall before this is over. Get ready. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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It has been said that it is darkest before the dawn. If so, night has only just fallen. The Mayan calender's prediction of vast changes in 2012 may be far more than indigenous superstition; just as our smug confidence in our western perception of reality may be just that, i.e. smug confidence. Certainty is no more the arbitrar of reality than opinion is of the truth. In fact, there is little difference between the two. Everyone believes they are right, no matter what they believe or what opinions they hold. That being so, as we move closer to 2012 I am more confident than ever that these times are especially important and it is no accident that we are here. I am optimistic that the transit will be successful. I am also certain it will not be easy. Trust, faith and courage will get us through. Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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Posted by Darryl Schoon in Untagged
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In an important way, January 2010 is little different than January 2009. A liquidity induced rally in the stock market along with trillions of dollars borrowed and spent hoping to restart a stalled economy has come and gone. The recovery is tentative at best because its not a recovery at all, it's a lull in the storm, a storm that is still coming. 2009 was like a volcano into which water was poured. That it didn't erupt is taken as a sign that it will not, a desperate bet at best. This is far more a financial crisis. We are on the verge of a great shift and the collapse of the financial system is only one of many to come. Ecological disasters are on the way. The large earthquakes off the coast of California and in Haiti are precursors of more. Extraordinary times are ahead. Good luck, Darryl Robert Schoon www.survivethecrisis.com www.drschoon.com
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